Faroe has announced the sale of a 17.5% interest in the Fenja development to Suncor for USD54.5 million which includes the transfer of tax losses.
Faroe will retain a 7.5% interest which fully aligns its equity interest with that of the other fields in the Greater Njord Area (Njord, Bauge, Hyme and Fenja). The transaction crystallises value of the asset pre-development and reduces Faroe’s capex (estimated to GBP70 million).
The PDO for Fenja was submitted in December 2017 and the operator VNG expects recoverable reserves of 97mmboe (72% oil). Fenja contains the Pil and Bue discoveries and will be developed as a subsea tie back to Njord. Pil will be developed first using three horizontal producers supported by water and gas injection wells. Bue will be brought online at a later date.
